Bitcoin ETF Investors Head for the Exits After Record Binance Hack — SkimNews
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- U.S. spot Bitcoin ETFs shed $643.2 million on Friday, their biggest single-day outflow of October, in the first trading session after the $6.4 billion Binance hack.
- Binance began recovering from the $6.4 billion hack by resuming withdrawals in phases and pledging to cover all user losses using company funds and an emergency reserve.
- Tether and Circle froze over $2.3 billion in stolen stablecoins linked to the Binance breach, marking a coordinated effort to limit the hack’s financial fallout.
- Ethereum ETFs extended their outflow streak to five days with $155.7 million in losses on Friday, bringing October’s total outflows to $1.61 billion.
- Solana ETFs lost $10.8 million on Friday, marking their fifth consecutive day of outflows and totaling $72 million for the week.
- Bitcoin dropped 4% to around $76,400 immediately after the hack but recovered to $77,520 by Saturday, while Ethereum and Solana traded down 3.9% and 4.5% for the week, respectively.
- Traders on Myriad shifted bearish on Ethereum and Solana, now giving Ethereum a 51.3% chance to fall to $1,500 before hitting $3,000, reversing last week’s bullish sentiment.
Why it matters: Institutional investors pulled significant capital from crypto ETFs after the Binance hack, showing that even with recovery assurances, large-scale security breaches trigger immediate risk-off behavior. The $643.2 million Bitcoin ETF outflow outweighs prior inflows, shifting October’s net position negative and signaling heightened sensitivity to exchange-level risk among regulated fund participants.
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